Lululemon Stock Price Continues Drop After CEO Announces Resignation
As if it were wearing a pair of its see-through pants, Lululemon’s tumble has been laid bare for all to see. Under CEO Christine Day, high-end yoga apparel maker Lululemon was a huge success story, with its stock growing steadily over the past five years. Then on June 11, to the shock of investors and the business world, Day said she would be stepping down as CEO, without naming a replacement or giving a detailed explanation for her departure. “Now is the right time to bring in a CEO who will drive the next phase of Lululemon's development and growth,” Day said in a press release, “I will continue to actively lead the organization while the Board searches for a new CEO, and will work to ensure a smooth transition."
Instead of saying “Namaste,” investors said, “No, thank you.” The announcement spurred investors to rush to the exits. Since the announcement on Tuesday, Lulu’s stock has been hit hard, falling more than 20 percent from Monday’s closing price. While it overcame a similar stock blip in March over a recall of sheer pants, the retailer’s stock was still stuck in a downward pose on Wednesday.